Flat growth seen for jewelry, fashion accessories this year

MANILA, Philippines - Exporters of fine jewelry and fashion accessories expect, at best, a flat growth in 2012, as foreign buyers are dwindling and are asking for huge price discounts amid the global economic crisis.

“This year, I don’t see any improvement compared to last year. More on a reduction; at best flat (growth),” said Luis Sicat, trustee for fashion accessories and fine jewelry of the Philexport.

Sicat said buyers are dwindling in light of the global economic crisis, particularly in the United States and Europe, the country’s two major markets.

With their buying power affected, buyers continue to ask for a price cut of as much as half, he added.

“The name of the game is the price. Even though the quality of our products is good, they will always go to China because their price is lower,” he noted.

Sicat said exporters, thus, need to develop products using unique materials and with unique design so they can command a price that is acceptable to them.

“Design and play of materials are still our competitive advantage. You have to innovate, you have to go out the door,” he said, adding;’“competitiveness is one big factor, we are not that competitive.”

Sicat said the government, for its part, should provide support to the export sector particularly in terms of export promotion, product design and development, and keeping the foreign exchange rate stable.

“If we are able to stabilize the exchange rate at P44 to P45 to $1.00 range, we can survive,” he said.

To sustain business operations in the midst of lower export sales, Sicat said more exporters are turning to the strong domestic market of 95 million people.   

“The (recent) Manila FAME is more for the Manila market. CITEM (Center for International Trade Expositions and Missions) is doing a good job in promoting Philippine products not for export but for the local market. Many retailer stores like Rustans and SM went to the Manila FAME to buy,” he added.